Bill Text: IN SB0026 | 2011 | Regular Session | Introduced
Bill Title: Local government reorganization and merger.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2011-05-18 - Effective 07/01/2011 [SB0026 Detail]
Download: Indiana-2011-SB0026-Introduced.html
Citations Affected: IC 36-1.5-3-5; IC 36-6-1.5-12.
Synopsis: Local government reorganization and merger. Requires the
department of local government finance to develop criteria for making
a one time adjustment to allow a political subdivision to retain a part
of its levy and budget that would otherwise be reduced because of
savings from a government reorganization or township merger.
Specifies that such an adjustment may not exceed 50% of the savings
or reduction realized in the first full year of operation after the merger
or reorganization. Specifies that the adjustment applies in the first year
in which the adjustment is made and to all subsequent years. Provides
that the fiscal body of the reorganizing political subdivision or new
township shall determine and certify to the department of local
government finance the amount of the one time adjustment that the
political subdivision or new township wishes to accept. Provides that
in the case of a reorganization under the government modernization
statutes, the amount of any one time adjustment accepted by a
reorganized political subdivision must comply with the reorganization
agreement.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Tax and Fiscal Policy.
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A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
(1) savings;
(2) reduction in the reasonably foreseeable expenses that would otherwise
(b) Except as provided in subsection (d), the one (1) time adjustment must permit the political subdivision to continue to:
(1) include in the political subdivision's budget part of the
budgeted amounts that would otherwise be reduced by the
department of local government finance under section 4 of
this chapter on account of the realized savings or reduction in
expenses that occurs because of the reorganization; and
(2) impose part of the property tax levy part of that would
otherwise be reduced by the department of local government
finance under section 4 of this chapter on account of the
realized savings or reduction in expenses that occurs because of
the reorganization.
(c) The one (1) time adjustment under this section may not exceed
fifty percent (50%) of the savings or reduction realized in the first full
year of operation after the reorganization is implemented, as
determined by the department of local government finance. The fiscal
body of the political subdivision shall determine and certify to the
department of local government finance the amount of the one (1)
time adjustment that the political subdivision wishes to accept
under this section. The one (1) time adjustment applies in the first
year in which the adjustment is made and to all subsequent years.
(d) The amount of any one (1) time adjustment accepted by a
political subdivision under this section must comply with the
reorganization agreement under which the political subdivision is
reorganized under this article.
(1) obtain from the department of local government finance approval under IC 6-1.1-18.5-7 of:
(A) a budget;
(B) an ad valorem property tax levy; and
(C) a property tax rate;
(2) fix the annual budget under IC 6-1.1-17;
(3) impose a property tax levy; and
(4) take any action necessary to ensure the collection of fees and other revenue;
for the new township government for the budget year following the year the officers take office.
(b) The department of local government finance shall establish criteria for making a one (1) time adjustment to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets under IC 6-1.1-18.5 if the new township realizes through a merger under this chapter a:
(1) savings; or
(2) reduction in the reasonably foreseeable expenses that would otherwise have been incurred by the political subdivision if the merger had not taken place.
(c) The one (1) time adjustment under subsection (b) must permit the new township to continue to:
(1) include in the township's budget part of the budgeted amounts that would otherwise be reduced by the department of local government finance on account of the realized savings or reduction in expenses that occurs because of the merger; and
(2) impose part of a property tax levy that would otherwise be reduced by the department of local government finance on account of the realized savings or reduction in expenses that occurs because of the merger.
(d) The one (1) time adjustment may not exceed fifty percent (50%) of the savings or reduction in expenses realized in the first full year of operation after the merger is implemented, as determined by the department of local government finance. The fiscal body of the new township shall determine and certify to the department of local government finance the amount of the one (1) time adjustment that the new township wishes to accept under this section. The one (1) time adjustment applies in the first year in which the adjustment is made and to all subsequent years.
